London Legal Podcast Episode: Commercial Lease Renewals
Host: Welcome to another edition of the London Legal Podcast hosted by Hodge Jones and Allen Solicitors. This episode is also going out via Bloomsbury Radio at Bloomsbury Institute London, via their Letter of the Law podcast.
As always if you’d like to make an enquiry and learn more about your legal rights in relation to the subject of this podcast, do get in touch with us via phone on 0330 822 3451 or via email at bilradio@hja.net.
Today we’re talking about an important subject in the area of Dispute Resolution, one that might not easily trip off the tongue or be so obviously relevant – but if you’re a business tenant or a business owner, it’s of vital importance – commercial lease renewals. I’m joined by Reema Chugh, a property and commercial dispute resolution solicitor and an accredited mediator at HJA. Reema, welcome to the show. So for listeners who are meeting you for the first time, tell us what you do day-to-day.
Reema Chugh: I specialise in property and commercial disputes, so commercial landlord and tenant disputes, service charge and lease breaches, forfeiture issues, dilapidations, break clause disputes, neighbour/building disputes, and contractual fallouts between businesses.
In practice, that includes landlords who want decisive action, tenants who want to protect trading premises, and businesses who need disputes resolved without losing months of time and energy. Often the real goal isn’t “winning”, it’s getting back to normal life.
And I’m also an accredited mediator, meaning I also act neutrally, helping parties find resolution without going through the court process.
Host: And just briefly — for those who don’t know the firm…
Reema Chugh: Hodge Jones & Allen was founded in 1977 by Henry Hodge, Peter Jones and Patrick Allen, with a strong access-to-justice ethos. Almost 50 years on, the firm has grown significantly, and we’ve been recognised in the Times Best Law Firms 2026 list.
We’re known for fighting cases properly but we’re also practical. Mediation is a key part of that: it’s often the smartest way to resolve disputes efficiently and commercially.
Host: Reema, why do I feel like this is one of those things business owners ignore until it’s too late?
Reema Chugh: Because it usually is ignored until it’s too late. Most business owners are busy running their actual business — not reading the lease they signed 10 years ago. And then suddenly their landlord serves notice. Or they realise rent is about to jump.
Host: So today we’re demystifying it?
Reema Chugh: Yes. We’re talking about when you have a right to renew, when you don’t, how landlords try to increase rent, and what mistakes cost serious money.
Host: Let’s start at the basics. What even is a commercial lease renewal?
Reema Chugh: In simple terms, it’s what happens when a business tenant’s lease is coming to an end and they want to stay. The key question is: do they have a legal right to renew?
Host: And that depends on?
Reema Chugh: Whether the lease is protected under the Landlord and Tenant Act 1954.
Host: And if it is?
Reema Chugh: If the lease is inside the Act, the tenant usually has a statutory right to a new lease. If it’s contracted out, they don’t.
Host: ‘Contracted out’ sounds sinister…
Reema Chugh: It’s not sinister, but it is deliberate. Before the lease was granted, the tenant signs a formal declaration giving up their right to renew. A lot of business owners don’t fully appreciate what they’re signing at the time.
Host: Okay, so if it’s protected, can the landlord still say no?
Reema Chugh: Yes, but only on specific statutory grounds.
Host: Such as?
Reema Chugh: Persistent delay in paying rent. Breaches of covenant. Or the big one — redevelopment. If the landlord genuinely intends to demolish or substantially reconstruct the premises, they can oppose renewal.
Host: And that has to be real, right? They can’t just say it.
Reema Chugh: Exactly. It has to be a genuine, settled intention. Courts look at whether the landlord actually has planning permission, funding, and a realistic scheme.
Host: Let’s talk money. Because that’s what most people care about.
Reema Chugh: Yes. The new rent isn’t just whatever the landlord fancies. It’s assessed at market rent.
Host: So if the area’s improved, the tenant pays more?
Reema Chugh: Potentially. But here’s the interesting bit: tenant improvements are disregarded.
Host: Meaning?
Reema Chugh: If the tenant made the premises more valuable, for example by installing a high-end fit-out, the landlord doesn’t get to increase the rent because of the tenant’s own investment.
Host: That feels fair.
Reema Chugh: It’s one of the more balanced parts of the legislation.
Host: If you’re just joining us, you’re listening to the London Legal Podcast where we’re delighted to be joined by Dispute Resolution Partner, Reema Chugh. The topic of the day is Commercial Leases, Reema and I was just about to ask you about renewal – in your opinion when should tenants start thinking about renewal?
Reema Chugh: At least 12 months before expiry. Ideally earlier.
Host: Why so early?
Reema Chugh: Because once formal notices are served — Section 25 or Section 26 notices — the clock starts running. Miss deadlines and you can lose rights entirely.
Host: So this isn’t a ‘I’ll leave it until three weeks before expiry’ situation?
Reema Chugh: Absolutely not. That’s how people accidentally forfeit protection.
Host: Alright other than that self-enforced error, give me your top three mistakes.
Reema Chugh:
- Not checking whether the lease is contracted out.
- Ignoring notices because they look technical.
- Assuming the landlord’s proposed rent is non-negotiable.
Host: So negotiation is normal?
Reema Chugh: It’s expected. Commercial lease renewals are essentially structured negotiations under a legal framework.
Host: Without naming names, what’s a typical scenario you see?
Reema Chugh: Let’s take a typical example of a Retail tenant. The lease is expiring. The Landlord serves notice proposing a 40 percent rent increase. Then the Tenant panics. But when comparables are properly analysed, the market doesn’t support that figure.
Host: So it’s about evidence.
Reema Chugh: Always. Surveyor evidence is crucial in contested renewals.
Host: If the landlord wins on redevelopment grounds, does the tenant get anything?
Reema Chugh: Yes, potentially statutory compensation, based on rateable value and length of occupation.
Host: So at least they’re not just thrown out empty-handed?
Reema Chugh: Exactly. The legislation tries to balance commercial certainty with business protection.
Host: Thanks, Reema Are you up for a rapid-fire round? Please provide some quick answers to some questions that we’ve received from our audience.
Reema: OK, let’s go
Host: Should business owners actually read their lease?
Reema: Yes. Radical idea.
Host: Is ‘my landlord seems nice’ legal protection?
Reema: No.
Host: Is timing important?
Reema Chugh: It’s everything.
Host: Is this something people should DIY?
Reema Chugh: Not if their premises matter to their business.
Host: Thanks for that. So if someone listening thinks their lease is expiring soon, what would you say to them?
Reema Chugh: Check whether it’s protected. Check the dates. And take advice early. Renewal isn’t just paperwork — it’s a strategic moment in your business lifecycle.
Host: And if they leave it too late?
Reema Chugh: Then we have a different, more stressful podcast episode….
Host: Thanks for the questions from our audience, reach out to us for more questions to be answered by Reema on the topic of commercial leases. Feel free to ask questions on social media as well. You can follow our podcast shows on YouTube and Spotify and be notified of upcoming episodes.
As always if you’d like to make an enquiry about your commercial lease, and learn more about your legal rights in relation to commercial leases more generally, then do get in touch with us via phone on 0330 822 3451 or via email at bilradio@hja.net.
Many thanks to you Reema, and we look forward to joining our listeners again on the London Legal Podcast.